Target Posts Second Consecutive Quarter of Sales Growth as New Leadership Strategy Gains Traction

Target achieved its second consecutive quarter of comparable sales expansion, with metrics climbing 3.8% as newly appointed Chief Executive Michael Fiddelke’s strategic merchandising refresh drives increased foot traffic and digital engagement. The retailer’s performance prompted management to raise full-year profit and revenue guidance, signaling momentum after more than 12 months of challenging sales conditions.

The turnaround marks a sharp reversal from Target’s recent struggles. A 5.6% surge in the first quarter had already ended a 3.8% sales decline during 2025, while the latest quarter’s gains represent recovery from a 1.9% decline in the year-ago period. Fiddelke, who assumed the chief executive post in February after two decades with the company, characterized the results as validation of growth initiatives announced earlier in the year.

Comparable store sales specifically grew 2.7%, while digital comparable sales surged 8.7% driven by same-day delivery expansion. Customer traffic to physical locations and website visits both increased substantially from May through July, company officials reported.

Target’s merchandising strategy has undergone significant transformation, with more than half of its back-to-school inventory consisting of new items. Recent partnerships include a limited-time collection with women’s lifestyle brand LoveShack Fancy and a dormitory decor line developed with Hollister. The company also recruited fashion designer Isaac Mizrahi as creative director at large to mentor internal design teams and develop new brand collaborations.

Beyond merchandise changes, Fiddelke is executing a broader operational overhaul that includes more than 100 full-scale store remodels currently underway, with a target of 130 completions this year. The company has also prioritized staffing improvements across its locations.

Target reported net earnings of $1.87 billion, or $4.11 per share, for the three months ending August 1, compared with $935 million, or $2.05 per share, in the prior-year quarter. Net sales increased 5.3% to $26.54 billion. The results included a $994 million benefit from government tariff refunds, which added $1.65 to earnings per share.

All six of Target’s main merchandise categories posted sales increases, with consumer electronics, toys, sports equipment and gaming—grouped under the “Fun 101” category—achieving double-digit growth. Chief Financial Officer Jim Lee indicated the company remains focused on price reductions for consumers, noting that Target has lowered prices on more than 10,000 items over the past 12 months.

Target now projects annual sales growth of 5%, up from prior guidance of 4%, and expects full-year earnings between $9.90 and $10.90 per share. Wall Street consensus had projected $2.34 per share on $26.15 billion in quarterly sales and $8.52 per share for the full year, according to FactSet data.